Conceptual Framework - the FASB Conceptual Framework Links Accounting Information

question 37

Essay

Conceptual framework - The FASB Conceptual Framework links accounting information systems with other areas of accounting, such as intermediate accounting and auditing. The first level of the conceptual framework explains the objective of financial reporting; the second level discusses elements of financial statements and qualitative characteristics. The framework's third level presents twelve fundamental accounting ideas (listed below), organized in three categories. Identify each category with its proper name from the conceptual framework, then organize the ideas based on the three categories. Use the grid provided for your answers.
$\begin{array}{ll}\text { Conservatism } & \text { Industry practices } \\\text { Cost effectiveness } & \text { Matching } \\\text { Economic entity } & \text { Materiality } \\\text { Full disclosure } & \text { Monetary unit } \\\text { Going concern } & \text { Periodicity } \\\text { Historical cost } & \text { Realization }\end{array}$

$$\begin{array} { | l | l | l | } \hline \text { Category name: } & \text { Category name: } & \text { Category name: } \\\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\\hline & & \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Global Corporations

Large companies that operate and provide goods or services in multiple countries beyond their home country.

Transnational Corporations

Large companies that operate and distribute products or services across multiple countries beyond their home base.

International Corporations

Large business entities that operate in multiple countries across the globe, often influencing economic, political, and social landscapes.

Union Negotiations

The process in which representatives of workers (union) and the management discuss and agree upon the work terms, wages, and benefits.